Quick take:
- Sleek has raised $5 million via a simple agreement for future tokens.
- The fundraising values the Web3 social platform at $50 million.
- The platform enables users to connect with each other using premium cards, of which the company has sold 15,000 to date.
Sleek has announced a $5 million seed round backed by Binance Labs, Shima Capital, Spartan Group, Symbolic Capital, Market Across and Big Brain Holdings. The Web3 social media platform said in a statement on Friday that the fundraising values the company at $50 million, sources close to the matter told The Block.
According to the announcement, the funds were raised via a simple agreement for future tokens (SAFT), giving the participants in the round a right to receive tokens when specific triggering milestones are met.
Sleek, which began as a no-code metaverse platform, ChapterX was part of Binance Labs’ incubation program, where co-founder Chase Guo was an investment director. The company has since pivoted to Web3 Social Networking amid the changing industry landscape.
Co-founder Tania Tse who describes Sleek as a Web3 social media platform that connects people via a card and Telegram bot said: “We built a Sleek card and Telegram bot to solve a very simple problem — you don’t remember most people you meet in person, so our card and Telegram bot automatically capture data for you and remind you later on.”
According to Tse, the platform’s community has been built through word of mouth, accumulating 20,000 verified users through events and conferences. Building such a community with no monetary incentives at all “provides Sleek with a solid user base and insight into user needs,” Tse said.
Guo said Sleek has tried to differentiate itself from other Web3 platforms that use tokens or incentives to bootstrap their user base because most of the time “[that] strategy does not result in unique content generation and sustainable growth.”
“People are here for the airdrop and leave once they cash out. Sleek took a very different approach — build a real use case first with die-hard fans,” added Guo.
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